Path Dependency and Path Creation: Continuity vs. Fundamental Change in National Economies

by Gerd Schienstock

ABSTRACT

Path dependency theory explains organizational, institutional, and political change processes mainly from a techno-economic view. The main argument here is that historic events in the past determine future paths. However, these developments often are inefficient. On this basis, it is hard to explain how completely new paths evolve. Therefore, this article focuses on the creation of new and more preferable paths in the future. It adds the key role of agency to the concept of path dependency to enhance the understanding of path creation.

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